The Union Government on Wednesday approved the merger of five State Bank of India’s subsidiaries with the parent, making it one of the top 50 banks in the world.
According to the proposal, the cabinet has approved the merger of State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore— and Bharatiya Mahila Bank Ltd with SBI.
Soon after the merger was announced share prices of SBI’S subsidiaries touched a new high in the stock market. According to Live Mint, State Bank of Bikaner and Jaipur shares rose 19.9% to Rs.599.6 each, State Bank of Mysore’s stock was up 20% atRs.547.9 and State Bank of Travancore shares rose 19.9% to close at Rs.478.9 each.
“The merger of SBI and its associate banks is a win-win for both. While the network of SBI would stand to increase, its reach would multiply. One can expect efficiencies to be created from the rationalisation of branches, common treasury pooling and proper deployment of a large skilled resource base,” State Bank of India chairman Arundhati Bhattacharya said in a statement.
She further said that currently, no Indian bank features in the top 50 banks of the world. With this merger, some visibility at a global level is likely to increase.
Last Updated 31, Mar 2018, 6:49 PM IST